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EMISSIONS AND EFFICIENCY ENHANCEMENTS WITH REM AFR SYSTEMS Prepared by Bill Gibb Ken Terrell Frank Zahner November 08, 2005

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EMISSIONS AND EFFICIENCY

ENHANCEMENTS WITH REM AFR SYSTEMS

Prepared by

Bill Gibb Ken Terrell

Frank Zahner

November 08, 2005

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SUMMARY Spartan Controls, established a business unit named REM Technology in the mid 1990’s to develop an engine control management system. REM Technology introduced and field tested several prototypes. Building on the success of field testing the REMVue Engine Management System was further refined and introduced into the marketplace. As of this date there are approximately 150 systems successfully operating across North America.

The REMVue Engine Management System is fairly complex. The claims made by REM Technology are to reduce fuel consumption and lower emissions with enhanced reliability. Industry workers were intrigued by the technology but many could not spend the required time to gain an understanding. Rather, they relied on the recommendations of others to validate any of their concerns. A great number of misconceptions fuelled by hearsay worked against the REMVue technology as did skeptical comments from the OEM distributors mimicking conservative engine manufacturer’s concerns about potential warranty liabilities. Work by BP and others disputed these notions however a need for third party verification was identified. PTAC (Petroleum Technology Alliance Canada, a not-for-profit organization) organized funding for the initiative with a goal to produce a document suitable to prove the technology and provide support for a user’s AFE (Authority For Expenditure) process.

The findings contained within this report, as complied by Accurata Inc. and supported by the in kind contributors, is conclusive. The REMVue Engine Management System performed within the ranges claimed, is a reliable field proven system and is capable of maintaining full system adaptive control over time. Fuel consumption was reduced by an average of 31.28 m3 per cubic inch of displacement per year (at 0.795 kg/ m3 gas) regardless of the speed or load of the carbureted test engines. Exhaust temperatures were reduced by an average of 1000 C. Industry totals were estimated with NOx reduced by 260,823 tonnes per year, CO was reduced by 13,591 tonnes per year, CO2e was reduced by 617,034 tonnes per year and 306,677 e3m3/yr fuel gas savings that could be allocated to increased production or reduced reserve depletion.

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TABLE OF CONTENTS

1.0 INTRODUCTION............................................................................................................. 1

2.0 REMVUE SYSTEM ......................................................................................................... 2

2.1 Suitable Applications .............................................................................................. 2

2.2 Technical Description ............................................................................................. 2

2.3 System Operation.................................................................................................... 3

2.4 REMVUE Aspects Affecting Engine ..................................................................... 4

2.5 Engine and Site Conditions Affecting REMVUE Performance ............................. 7

2.6 Adaptive Capability ................................................................................................ 8

2.7 System Comparisons with Maintenance and Operating Aspects ........................... 9

3.0 PUBLIC BENEFITS OF REMVUE ............................................................................. 10

3.1 Methodology of Analysis...................................................................................... 10

3.2 GHG Reductions................................................................................................... 11

3.3 Conservation of Natural Gas Resources ............................................................... 11

4.0 INDUSTRY BENEFITS OF REMVUE........................................................................ 12

4.1 Fuel Gas Consumption.......................................................................................... 12

4.2 Reliability.............................................................................................................. 12

4.3 Operational Improvement ..................................................................................... 12

4.4 Corporate Citizenship with Enhanced Profit ........................................................ 12

5.0 COST RECOVERY........................................................................................................ 12

5.1 Scope of Installation ............................................................................................. 12

5.2 Variables ............................................................................................................... 13

5.3 New Unit Installation............................................................................................ 13

5.4 Calculating Cost Recovery ................................................................................... 13

6.0 FIELD TEST RESULTS................................................................................................ 14

6.1 Individual Site Field Test Results (BP in kind contribution)................................ 14

6.2 Load Map Field Test Results (PetroCanada in kind contribution) ....................... 17

6.3 Compare Field Results to OEM Values (PetroCanada in kind contribution)....... 18

7.0 CONCLUSIONS ............................................................................................................. 22

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Appendix A BP Field Test Data Appendix B Stoichiometric Trends of Emissions Components; PetroCanada Data Appendix C Histograms of BP Field Test Results Appendix D PetroCanada Filed Test Results Appendix E PetroCanada Field Test Graphs

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Prepared for Petroleum Technology Alliance Canada

Presented November 2005 Page 1

1.0 INTRODUCTION The oil and gas industry has a mandate to reduce its consumption of energy and associated emissions. To achieve this mandate the economic benefits must be clear, the environmental gains attainable and a solid business case presented. The industry is prepared to embrace emerging technology but must be convinced of success before doing so.

The Petroleum Technology Alliance of Canada (PTAC) contracted Accurata Inc to conduct an independent third party study of an advanced engine management system. The intent of the study was to qualify the REM Technology Inc’s claims that their REMVue Engine Management system will lower fuel consumption, reduce emission levels and improve engine reliability through reduced exhaust temperatures. BP Canada Energy Company provided the test sites consisting of Waukesha and White Superior engines of various sizes and PetroCanada Oil and Gas provided one site with three similar Waukesha engines. Testing commenced at the BP facilities in October, 2004 and the PetroCanada facility in December, 2004.

This report contains data from field tests on twelve engines where REMVue systems were installed. Data taken before and after the installation was available on eight of the engines. We were also able to compare three similar engines, two equipped with the REMVue to one engine configured with factory equipment. Snapshot before and after data, load map data and readings to support the sustainability of the system over time are presented. Emissions measurements were taken in the exhaust stream with fuel gas measurements to quantify the results. BP and PetroCanada furnished the test sites and funding of the testing as an in-kind contribution to the study. BP also furnished an in-house survey of their operating costs and reliability with respect to REMVue equipped systems and, where possible, compared to non-REMVue equipped engines. Finally we estimated the total number of engines where the REMVue technology could be applied in order to determine the benefit that the public could derive in reduced emissions and fuel consumption. Economic aspects are defined for industry and public benefit.

The benefits to the public are a direct and measurable industry contribution to meeting the Canadian government’s commitment to the Kyoto accord. A decrease in GHG (Green House Gas) levels directly translates into a reduction of tonnes of pollutants emitted annually. The conservation of the natural resources through a reduction in internal usage rates may also slow the rate of depletion and therefore conserve consumption of reserves for fuel usage.

The benefits to industry are direct economic gains wrought through reduced operating costs (fuel usage rates), improved system reliability, improved productivity, generally extended service life of components and longer maintenance intervals. At the higher market rates for natural gas, fuel gas savings are compounded when the gas is commoditized.

Operations groups report that spark ignited internal combustion engine fuel gas consumption rates often exceed the Original Equipment Manufacturers (OEM) data by as much as 30%. The comparisons between the engine manufacturers published data for exhaust emission and the actual field emissions did not match. With an additional amount of fuel being consumed, the exhaust emissions levels would be at higher than expected levels as well.

The Original Equipment Manufactures (OEM) of rich burn, turbocharged engines have been sent a clear message that industry, as evidenced by the increasing number of REMVue systems in use, is expecting that some form of collaboration will develop between suppliers to better address the common concerns of reducing fuel gas consumption and the lowering of emission rates.

Accurata Inc. would like to acknowledge the following companies and organizations for their generous funding or in kind contributions for the field studies and subsequent reporting on the REMVue system:

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Prepared for Petroleum Technology Alliance Canada

Presented November 2005 Page 2

AERI BP Canada Energy Company CETAC West Natural Resources Canada Petro-Canada Oil and Gas PTAC Shell Canada REM Technologies Inc

2.0 REMVUE SYSTEM

2.1 Suitable Applications

It was determined that the engines which benefited the most from the REMVue technology are the Waukesha rich burn VHP and VGF series turbocharged model as well as the White Superior GT, SGT and GTL models. The benefit to Caterpillar engines is not known. REM Technology has not installed their system on any of the Caterpillar engine models. The low horsepower models (G3300 and G3400 model series) will be tested in the near future to explore the benefit of improved cylinder head life for these engines. The benefit to the White Superior engine was ease of starting and an increased reliability. This has translated into improved productivity and a reduction in fuel usage. Fugitive emissions are reduced by decreasing the start gas exhaust during a typical two to four hour starting exercise (non-REMVue equipped).

Therefore the most suitable candidate for the REMVue system, from the perspective of achieving a reduction in overall fuel gas consumption and exhaust emissions are the Waukesha VHP and VGF GSI turbocharged engine models. These engines incorporate rich burn technology where operational settings range from best economy (lowest power), to stoichiometric, to best power (highest fuel consumption). The greatest improvements through the reduction of fuel gas consumption and exhaust emissions are achieved when the REMVue system is retrofitted onto these engine types.

The REMVue system can also offer this benefit for any engine without a suitable engine management system. REM Technology reports that operations improvements have been achieved on Waukesha AT models. They also reported operational improvements in other lean burn or stoichometric naturally aspirated engines where poor quality fuel required better engine management. We did not investigate these claims but the REMVue system would theoretically offer these improvements.

2.2 Technical Description

The REMVue system is an after market product designed to replace the original equipment manufacturer’s (OEM) mechanical air / fuel ratio control system. It consists of an automated industrial CPU with RAM and non-volatile computing storage system for the computing platform. Mechanical equipment substitutions/alterations are required to provide the required interface linkage to the computing software package in order for the system to operate. The inputs are monitored via a real-time operating system which provides prioritized multi tasking of control, monitoring, communications, calculation and operator interface.

The REMVue 500 utilizes a 32 bit industrial PowerPC platform that runs a Linux based operating system. The system is capable of executing more than 10 PID control loops within a 200 ms cycle time. A variety of analog and digital signal processing capabilities are available, including high speed discrete I/O, discrete relay outputs, RTD inputs, thermocouple inputs, in addition to the standard current and voltage based digital and analog I/O. Up to 1024 local I/O points maybe

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processed by a single base controller. Sample rates of approximately 0.5 ms per channel are possible with some system configurations. The REMVue 500 hardware contains facilities for Ethernet (1x), RS232 (3x), and RS485 (1x) communications utilizing proprietary or industry standard communication protocols. Configuration and historical data can be uploaded from the controller directly or acquired via a LAN or remote modem connection. Up to 2 MB of data-logging memory is available on board the base controller. With the REMVue diagnostic option the calculated power, flow, rod load and abnormal cylinder impacts can be displayed and compared with expected values for diagnostic purposes.

The REMVue system aspires to control the engines emissions by establishing a lean burn combustion operating condition within the rich burn engine original design. It does this by introducing a large air volume into an open chamber cylinder design. The original turbo bypass valve (wastegate) is replaced to maintain control and optimize the air manifold pressure. A mass flow fuel gas meter is employed to match the optimum amount of fuel for the air volume supplied. The system controls sense the air manifold pressure and fuel gas flow. The system also automatically adjusts the engine operation to compensate for changes in ambient conditions and load changes. The primary engine load indicator is the system’s engine torque calculation.

2.3 System Operation

A comparison of the basic differences between a standard rich and lean burn combustion process and that of the REMVue system is offered below. This comparison illustrates why the advanced lean burn technology, as offered by the REMVue system is desired. The following are the characteristics of engine combustion types.

Rich burn characteristics

Low NOX

High CO2

High CO

Wasted fuel due to inefficient combustion

Example: Waukesha L7042GSI factory Lambda = 0.97 (best power) to 1.06 (best economy)

Example: Waukesha L7042GSI factory peak pressure = approx 800 PSIG (8:1 CR)

Lean combustion characteristics

Moderate to low NOX

Low CO2

Low CO

Best fuel economy due to more complete combustion and fuel metering

Example: Waukesha L7042GL factory lambda = 1.83 (best power) to 1.89 (best economy)

Example: Waukesha L7042GL factory peak pressure = approx 1150 PSIG (10.5:1 CR)

REMVue Lean combustion characteristics

Moderate to low NOX

Low CO2

Low CO

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Best fuel economy due to more complete combustion

Example: Waukesha L7042GSI REMVue lambda = 1.3 to 1.45 (best economy) and 1.58 to 1.72 (best emissions)

Example: Waukesha L7042GSI REMVue peak pressure = approx 900 PSIG (8:1 CR)

The amount of fuel savings is dependant on the engine model chosen and the initial air-fuel ratio set point. REM Technology claims that virtually any engine may be fitted with the REMVue system with the benefit of easier starting, but less of a fuel cost saving is realized (i.e. lean burn engines already provide lower rates of fuel gas consumption as compared to rich burn). A good quality engine management system operating at stoichometric conditions will also produce some fuel savings. The added benefits of lean combustion (fuel consumption and emissions reduction) can only be realized with a REMVue equipped, fuel injected or pre-chamber lean burn engine design.

2.4 REMVUE Aspects Affecting Engine

The peak firing pressure (BMEP) is slightly higher with the REMVue system than the factory spec rich burn engine, but lower than a pre-chamber lean burn system. The REMVue supplier maintains that the increased pressure is the result of more complete combustion and the higher intake manifold pressure. A plot of the peak firing pressure produced in a lab for REM Technology identified a 10% to 15% increase in peak firing pressure on a 7042GSI when using the REMVue system.

Engine power does not appear to be affected by the REMVue system installation. REM Technology maintains that the shapes of the peak firing pressure curves become slimmer as the peak increases (power is the theoretical area under the curve) to maintain the same power as the factory design. Theoretically, with more complete combustion, a slight increase in power should be available. The control systems maintain the engine power within factory settings to ensure that the equipment is not over loaded.

The increased firing pressure requires more energy to fire the spark plug which results in a slight increase in the erosion of the center electrode. The existing design of the engine limits the amount of space that would be required to install a spark plug with an increased insulation length to better manage the higher energy imparted into the spark plug. Reduced spark plug life (10% to 15%) has been reported but operators agreed that the shorter plug life did not shorten the engine service intervals.

An increase in peak firing pressure could result in a slight increase in torque applied to the drive train components. A concern was that torsional stresses and an increase in vibration could lead to lowering the equipments service life and affect reliability. The standard harmonic balancer, installed on every engine is designed to dampen a range of these forces. Spartan and the users of the REMVue system have not reported any issues related to torsional stress failures or reduced component life with the original harmonic balancer in place. Most factory supplied harmonic balancers are designed for 10% overload for two of every 24 operating hours. The factory supplied harmonic balancer is therefore deemed to have sufficient excess capability to manage the additional torsional stresses.

Waukesha experienced accelerated liner wear when they introduced the GL lean burn (pre-chamber) engine design. New liner designs incorporating surface hardening techniques were introduced to increase reliability. The REMVue system, with a slight increase in firing pressure, does not appear to accelerate liner wear. Field operations groups report no difference in liner service life compared with the unmodified engine.

The auxiliary water circuit is exposed to a slightly higher heat duty. The increased air volume requires more cooling due to the higher volume of air delivered by the turbocharger. An increase of

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about 4oC to 6oC should be expected for a Waukesha 7042GSI. REM Technology advises that the engine turbo inter-cooler circuit may require an upgrade for the additional duty but an upgrade is rarely necessary. The physical location of the unit, relative to the historical ambient temperature records, is a factor that can be taken into consideration to address this area of concern.

One may also speculate that the oil should remain cleaner with the use of the REMVue lean burn system due to a more complete combustion. The result is a reduced amount of combustion by products accompanying the blow-by gases that accumulate within the engine crankcase cavity and mix in with the engine lubricating oil. We could not find evidence to support or deny this claim. At best, service intervals would be reduced. At worst, service intervals would be unchanged.

An attractive feature of the REMVue system is that a catalytic converter and associated control systems are no longer required when an engine is fitted with a REMVue system. The elimination of the catalytic converter signals an end to ongoing operational and maintenance costs of these devices. Maintenance of the catalyst elements include burn-in or service life milestone replacement, disposal of the heavy metal accumulations on the catalyst as a result of cleaning the medium, exhaust stream sensor replacements, regular monitoring, working at heights to man-handle catalyst elements, and other tasks to calibrate or maintain the engine management systems.

While fuel injected engines may not experience the same reduction in fuel gas consumption the REMVue system has provided significant side benefits in two critical areas, as is noted below. The significant news here is that the White Superior engine service lifespan can be extended as longstanding problems have been effectively resolved courtesy of the REMVue system.

The White Superior engine product line is noted for hard starting, engine surging as evidenced by rpm fluctuations during steady state operation and air-fuel system reliability concerns. All of these issues have been addressed and eliminated with the installation of the REMVue system. Operation groups report that they now record increased uptimes and expressed that the production gains alone at current gas values justify the system installation costs. Additional savings through a reduction in overall maintenance expenses and reduced personnel call outs are an added benefit. The easier starting and speed stability is available for most engines but this alone would not justify the expense. It should be noted that most factory equipped White Superior engine can easily require two to four hours to start a cold engine. If natural gas is used for the pneumatic starter, then substantial natural gas fugitive emissions are released each time the engine must be started.

The results from pre-audit and post audit testing provided evidence that exhaust emission levels experienced significant and in some specific areas, dramatic reductions for the Waukesha VHP GSI engines. Lower exhaust temperatures were also noted with a reduction of approximately 100 oC (due to increased air volume and lean combustion). The REMVue system will not achieve much fuel gas savings when installed on a pre-combustion chamber lean burn engine design.

Several control devices and equipment considerations are required for the REMVue. The following aspects should be considered for a REMVue installation.

Mass Flow Meter Installation:

This device replaces the OEM air fuel ratio control device. The installation of a mass flow meter provides the means whereby any changes in the fuel gas heating values are accommodated and the inlet system adjusted accordingly. As the heating content per unit volume (BTU per standard cubic foot) of the fuel gas changes (methane, ethane, propane) the heating content per unit mass changes (BTU per pound) by a relatively small amount. This relative independence from volumetric heat content enables the air-fuel ratio to be controlled to the desired value. The REMVue advanced air-fuel module is effective in controlling the air-fuel ratio for engine speed, load and temperatures. The relation of the measured engine speed (input) to the set-point controls the fuel valve (output) while the air set point pressure is calculated from the values of lambda, engine speed, fuel,

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temperatures and ignition advance. Such control eliminates the tendency for detonation as fuel heat content changes.

Turbocharger Evaluation and Modifications:

Moving from a rich to a lean operation requires more air. For an engine operating with a lambda of 1.4 to 1.6 the manifold air pressure change in the turbocharger may be achieved by utilizing a different nozzle ring. In other cases the entire turbocharger assembly may be replaced with a larger air compressor capacity model. A control valve fitted to bypass the exhaust stream around the turbocharger manages the turbocharger speed.

Air Intake Temperature Considerations:

Cool intake air is an important part of the equation as it reduces the maximum pressure required and contributes to a reduction in the amount of N0x by lowering of the maximum combustion temperatures. The introduction of a larger air mass flow rate will add slightly to the heat load duty that the intercooler assembly will see. Engine designers have provided extra capacity in the design of the intercooler with respect to Canadian applications because they are designed for duty in temperate and warm climates. Evidence to support this can be found in the design of air intake systems that incorporate warm air draw designs to preheat intake air streams where ambient temperatures can be well below freezing for extended periods. With the installation of the REMVue system the need for preheated intake air is either eliminated completely or the dependency reduced to address the extremes of seasonal low temperatures.

Engine Governor Control:

The governor is not required with a REMVue system. The fuel gas control valve manages the engine speed (typically a Fisher automated globe valve with a Rosemount FieldVue controller).

Carburetor Modifications:

The mechanical linkage and pressure regulation furnished on most engines is too slow and lacks the precision necessary for the REMVue system. The carburetor is replaced with a body containing a diffuser alone and no throttle linkage. Control is maintained through throttling the fuel gas valve and the turbocharger speed.

Inlet and Exhaust Duct Sizing:

Higher volumes of air and exhaust volumes could theoretically require larger ducts for the air inlet and exhaust systems. This has not been an issue to date. The existing installations appear to have sufficient excess capacity to accommodate the increased volumes.

Control Panel:

The control system software package is housed in an enclosure designed to provide a secure operating environment. The mounting provisions are designed to isolate components from vibration, heat and direct exposure to the operating environment. As operations personnel are typically present during the initiation of equipment start ups, the most common location for the panel module is adjacent to the engine.

Typically the REMVue system installation is undertaken at the end of the original equipment manufacturer’s (1) year warranty period. Engine OEM’s have elected to issue a blanket policy statement to address end user questions regarding warranty coverage following the installation of the REMVue system. The OEM statement informs the engine owner that warranty coverage will remain in force provided that, in the event of a claim, it can be demonstrated that the aftermarket equipment did not in any way cause or contribute to the failure.

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2.5 Engine and Site Conditions Affecting REMVUE Performance

A finding of the study concluded that it is important to include training and educational components leading up to the installation of the REMVue system. When an operating system is properly understood, correctly operated and adequately maintained the operations group will be in a better position to provide feedback. An understanding of the equipment and operating scenarios that may impact the end results is critical to identifying additional opportunities for improvement.

With the installation of any new product expectations typically run high, assumptions are made and at times skepticism can creep in as well. The REMVue system performance claims have been based on a wide range of installations and subsequent operational experience. The vendor literature clearly states that individual results may vary dependant upon mechanical and operational variances.

Field testing of equipment cannot be compared to testing in a laboratory test cell setting. For example, industry operations groups commented that fuel gas consumption rates exceed the OEM data by as much as 30%. The laboratory test cell results are arrived upon using fixed load parameters and a static fuel gas supply.

Field test results may also vary between seemingly identical equipment models due to subtle mechanical design differences and load variables. Engine fuel gas streams may be derived from a single common source, blended at the header or from another source. The compressed gas stream is also subject to variables such as header inlet, outlet pipe design and plant routing. Operations personnel possessing an understanding of the variables that exist are better equipped to enhance equipment performance and maximize component service life. The engine condition and test results will vary with the following.

Total Number of Operating Hours:

Make note of when the equipment was installed, last overhauled or nearing a major maintenance milestone. Tired and worn equipment performs much differently than new.

Unscheduled Maintenance Undertaken during the Testing Period:

Take note as to what items were checked, adjusted, repaired or replaced.

Ignition Type:

Take note that first generation ignition systems are far less efficient than modern systems. A modern ignition system should accompany the REMVue to maximize the benefit.

Fuel Composition and Quality:

Changes in the fuel gas supply may occur during operation as wellhead gas supply streams co-mingle. Well flow adjustments or the introduction of new well flow will impact the fuel stream.

Spark Plugs:

Engines may be fitted with spark plugs originating from different suppliers. The service life of spark plugs will vary due to materials used in their manufacture, fuel composition, engine loading and engine speeds. Another factor to consider is the condition of the ignition system firing the plug. An often overlooked performance related problem is the spark plug installation procedure itself. The spark plug body will deform if over tightened during installation. Failure to use a torque wrench is the leading cause of this failure. An over tightened sparkplug will allow combustion gases to escape up through the plug interior and cause overheating and voltage leakage as carbon trails develop. An improperly tightened spark plug is also a safety concern as it can separate from its casing and leaves the combustion chamber open to atmosphere. Plugs that are not seated properly will not transfer combustion process heat through the plug to the water cooled engine casting. Failure to achieve this heat transfer will result in poor engine performance.

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Field reports indicate that spark park plug life is shortened by 10% to 15% following the installation of the REMVue system. This is attributed to the fact that the mixture in the combustion chamber is leaner requiring a slightly higher BMEP and thus higher firing voltage being directed to the plug. To date this is the only “negative” that has been identified in regards to the REMVue installation. The use of precious metal spark plugs will increase the plug life.

Engine Governor Control System Type:

The sensitivity of an engine governor is measured by its ability to track engine loading and efficiently adjust the air-fuel ratio to match the load. Mechanical systems are prone to speed instability and the problem can be aggravated as the linkage wears. OEM mechanical systems are still in wide use as they are inexpensive, easy to maintain and simple to adjust. A number of electronic governor control systems are available for retro-fitting existing equipment. Typically newer engines are equipped with OEM factory supplied electronic governor systems.

Dry Paper Element Filtration System:

Research by manufacturers has caused a shift away from the oil bath filtration system towards the dry paper elements. The easily replaced or reusable chemically treated paper pleated air filters elements are proven by engine manufactures provide a 99.9% filtration capability. The high efficiency offers the best protection for the engine and is not impacted by ambient air temperatures as compared to oil bath filtration systems which call for seasonal oil changes. An optional feature is the air filter differential pressure sensor that will shut the engine down should the filter element restriction increase signally that the filters require attention. Failure to monitor the differential increase across the across the paper elements will result is poor engine performance (i.e. increased fuel usage, low power, etc.).

Oil Bath Air Filtration System:

Oil bath air filtration systems have a long service history and remain in widespread use. To ensure that these filters perform properly requires regular monitoring and maintenance. The oil reservoir oil level must be maintained within specifications and debris accumulations in the reservoir sump must be removed. An over-filled reservoir or an incorrect oil viscosity will result in oil being drawn into the intake manifold and being consumed within the combustion chamber. This will impact exhaust emission levels. Failure to properly maintain the filter will allow air borne impurities to enter into the engine. Poorly maintained oil bath filters do not restrict the air flow rate but render the design characteristics of the oil bath system ineffective. The entrance of air borne dusts and other debris such as insects has been shown to increase liner and piston wear rates, increase the rate of oil contamination which in turn leads to a further increase in engine wear rates.

Exhaust System Backpressure:

The amount of exhaust back pressure will vary among engine types and the individual installation design. Elevated backpressure in the engine crankcase will affect the engine performance. OEM specifications are provided to ensure that system design is within guidelines. Engines that begin to exhibit higher than normal backpressure readings need to be inspected for exhaust system restrictions and or internal failures.

Inlet Air Variances:

The ambient temperature of the intake air, moisture content, and barometric pressure is constantly changing. The altitude at which the engine is located will also affect the engine horsepower rating as an altitude derate may come into affect.

2.6 Adaptive Capability

The REMVue system effectively tracks changes in ambient conditions and can compensate for load changes as well. The automatic compensation capability eliminates the periodic adjustments that

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are required with other systems (i.e. on going carburetor adjustments to attain emission levels). Optimized operation is assured at all times with an adaptive control system. An additional benefit is that the engine speed and compressor load are not set back to accommodate transient upset conditions. Incremental production gains can actually be achieved in this case. When linked to a compressor performance measurement system and process control valves an even more sophisticated automatic compensation routine may be accessed. This system is an expansion to the capabilities REM Technology can provide but are best left to another venue for discussion.

2.7 System Comparisons with Maintenance and Operating Aspects

2.7.1 Catalytic Converter

A catalytic element treating the exhaust stream is required on stoichometric engines when their emissions are higher than allowed by regulatory limits. The installation of a REMVue system precludes the need for a catalytic converter. Catalytic converters and the associated control systems also require the ongoing expense of maintenance and condition monitoring. Emissions treated by the catalyst are typically lower than those from a pre-chamber lean burn engine design at first but then increase over time. Emissions from a REMVue equipped system will typically produce sufficiently low CO and NOx to meet regulatory limits.

If a catalytic converter is used in lieu of the REMVue system, the exhaust emissions would be reduced but there would not be a savings in fuel gas consumption. The air-fuel ratio is maintained quite rich to maintain hot temperatures and unburned hydrocarbons for efficient catalyst performance. Running the engine at more rich settings increases fuel consumption. Emission reduction is achieved but at a cost to the operator of the equipment and higher fuel usage.

In looking to future, the industry would receive a benefit through suppliers working together to develop solutions. A future possibility may be a scenario that would see the installation of a REMVue system incorporated into the OEM design. Such an option would offer an alternative to installing a catalytic converter to meet site regulatory requirements. Under the current new equipment acquisition scenario, producers typically wait until the warranty term expires to remove the catalytic converter and install a REMVue engine management system. This current process is not only costly but also uses up valuable materials and other non-renewable resources. The engine manufacturer also inadvertently makes their product less competitive.

2.7.2 Lean Burn

Lean burn engines use a very lean air-fuel mixture to reduce emissions. The air-fuel mixture is typically maintained at approximately 30:1 and this is so lean that a spark plug will not ignite the mixture. To overcome this problem, a pre-chamber attached to the main combustion chamber is filled with a stoichometric mixture of air and fuel. The mixture in the pre-chamber is ignited by the spark plug and a flame front travels into the main combustion chamber to ignite the lean air-fuel mixture.

Since their introduction, the lean burn engines have a reputation in the industry as being difficult to start and costly to maintain. Many end users elect to purchase a rich burn engine equipped with a catalytic converter rather than risk the added operating and maintenance costs associated with lean burn engines. The REMVue engine management system offers the end user a viable alternative to purchasing a lean burn engine or equipping rich burn engines with catalytic converters.

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2.7.3 Engine Management Systems

Any engine will benefit from installing an engine management system. It provides adaptive control and, as a result, at least a savings in fuel consumption. The engine management system allows the operator to change the engine tuning from “best power” to “best fuel” and maintain the stabile engine operation. Engines tend to be more sensitive to load changes (and shut down) when run at leaner air-fuel ratios (“best fuel”). A rule of thumb would be a 3% to 5% fuel consumption reduction due to more stable and adaptive engine control alone. Engine management systems are most commonly associated with air-fuel ratio controls for rich burn applications using catalytic converters or those supplied by the engine manufacturer for (large) engines with sophisticated engine control requirements. Other engine management systems control the engine at rich settings but these may not provide adequate control at lean settings. The REMVue is designed to provide stability at lean settings.

3.0 PUBLIC BENEFITS OF REMVUE

3.1 Methodology of Analysis

We endeavored to estimate the current emissions produced from all the engines that could benefit from REMVue installations. The first task was to determine the appropriate engine models for the analysis and the second challenge is to count them. We know the most benefit could be derived from stoichometric turbocharged engines. We knew from our experience that the most popular models of these engines are the Waukesha VHP and VGF model GSI style plus White Superior 825 model GT, GTL and SGT style engines. Another manufacturer, namely Caterpillar, is also a very popular choice of this type of engine. We don’t know how effective the REMVue system would be on a Caterpillar engine since a trial has not been performed. We determined that the largest REMVue candidate engine population would then be the Waukesha and White models mentioned above. We requested the respective engine manufacturers to furnish the quantities of those models they have sold into Canada.

These engine quantities were used to estimate the total predicted emissions for the Canadian fleet. We employed the OEM emissions estimates for the particular engines and then extended the totals based on engine quantities. Waukesha and Superior both requested that the individual totals of each engine model remain undisclosed. It is more important to our analysis to show the total emissions so the totalized data is presented. Individual engine emission levels are given for comparison purposes. The typical field values for engines with the REMVue installed from the PCOG and BP tests were then employed to establish the possible reduction available from the application of the technology.

Several aspects were considered when estimating the total emissions from these engines. The quantity of engines provided to us is conservative for Waukesha in that it starts at only 1985. Waukesha engines suitable for REMVue installations have been sold into Canada since the 1970’s. It was also common for US companies to export mechanical drive packages to Canada in the 1970’s and 1980’s. Engines on these packages may not have been included in the OEM quantities since the sale did not originate in Canada. Engines exported from Canada are not included in the totals. Indeed, service companies and brokers continue to import equipment that may not get recorded on the OEM’s lists. Additionally, older engines and some facilities are operated at slower speeds, thus the power utilized will be less that then maximum modern engine power used in the estimates.

The lower speed will reduce the theoretical emissions while the understated engine quantities will increase the emissions. Some engines will also be out of service. REMVue systems already

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installed will also detract from the available benefit. Rotating equipment (i.e. compressors, generators, pumps, etc) located in gas plants tend to be much larger and older since Canada has not experienced any substantial gas plant expansion in recent years. Many of these machines would benefit from a REMVue system. These machines are built by a variety of manufacturers with two or four stroke engines. We do not know the total quantity of these engines in the Canadian fleet so we have ignored them in our estimate. Many of them are either shut in or partially utilized. We can conservatively state that those in service should contribute more than 200,000 BHP combined but their contribution to emissions and fuel consumption estimates would be difficult to accurately asses.

Newer equipment fitted with catalytic converters will reduce the emissions but over time the catalysts become clogged and lose their effectiveness. Refurbishing or replacing the catalysts is often put off for long periods of time. It is also our experience that the population of engines fitted with catalytic converters is small with respect to the total. The influence of catalytic converters was deemed to be small.

It is difficult to estimate the total impact of these aspects. In the end we used our experience to determine that the estimate provided is very conservative. Our estimate for determination of the public benefit is thus based on 1665 spark ignited, natural gas fuelled engines over 600 BHP in Canada for a conservative total of 2,120,178 BHP as provided by Waukesha and White Superior or their authorized distributors.

3.2 GHG Reductions

Extending the engine totals provided by the OEM distributors it has been determined that they would produce approximately 405,575 tonnes per year of NOx and 27,786 tonnes per year of CO emissions according to OEM predictions. Our estimates of REMVue modified emissions are 144,752 tonnes per year of NOx and 14,196 tonnes per year of CO emissions. This yields a reduction of 260,823 tonnes per year NOx and 13,591 CO emissions based on typical values obtained during our field tests. Furthermore, 617,034 tonnes/yr total CO2e emissions reduction is expected to be associated with the estimated annual fuel gas saving of 306,677 e3m3 (CAPP method based on at 31.28 m3/CID-yr fuel saving).

Reduced natural gas emissions are realized with reduced start gas cycles when the units are easier to get started. This will apply particularly to the White Superior engines. Additionally, less downtime will equate to fewer shut down events. A compressor process system is normally blown down to atmosphere (raw or incinerated gas release) and purged each time it is shut down. The reduced shut down events will reduce the total emissions from blowing down the process equipment as well as reduce the start gas emissions from starting the unit again.

3.3 Conservation of Natural Gas Resources

The fuel gas savings associated with the REMVue as well as reduced gas releases will allow conservation of our natural gas reserves. Natural gas not used for fuel or other utility services will be available for production or save until it is needed. Reduced annual fuel gas consumption alone is estimated at 306,677 e3m3 for the White and Waukesha engines counted in our fleet estimate. Using $8/GJ, this amounts to $93,572,387 of incremental annual revenue previously allocated to operating costs. Royalties, taxes and profits are also now available to be derived from this resource.

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4.0 INDUSTRY BENEFITS OF REMVUE

4.1 Fuel Gas Consumption

The REMVue Engine Management System has proven to reduce the consumption of fuel gas for a rich burn spark ignited engine by an average of 31.28 m3/CID-yr (PetroCanada tests). For one Waukesha 7042GSI this would equate to a fuel gas savings of 220,273 m3 per year.

4.2 Reliability

A reliability study was conducted by BP Canada Energy Company to determine if reduced downtime and maintenance costs could be attributed to the REMVue. They were able to verify that after the REMVue systems were installed on the engines in the study there was a reduction of 31% in unscheduled downtime.

The automated controls associated with the REMVue allowed less variability in unscheduled downtime. The reduced downtime allows the unit performance to be more predictable. Production volumes and the associated revenues are enhanced. Accurate records of the costs associated with the downtime or reliability were not documented so they could not be included in the study results.

As mentioned earlier, the improvement in ease of operating the White Superior engine has been described. This also leads to less downtime and enhanced reliability.

4.3 Operational Improvement

Less downtime will result in reduced maintenance costs and improved production volumes. Steady state engine operation versus an engine experiencing 10 to 50 RPM variances will result in less wear and stress on engine components. Reduced operating temperatures will prolong engine component life and reduce annual maintenance costs. All of these factors will increase the hours of operation and yield an increase of incremental production.

4.4 Corporate Citizenship with Enhanced Profit

The REMVue system results in reduced downtime, lower maintenance costs, reduced fuel consumption and lower GHG emissions. This results in lower investment in the unit to meet production quotas or emission regulations. The REMVue system also offers producers compliance with regulatory requirements combined with fuel gas savings. This can also satisfy corporate environmental initiatives with enhanced profitability. These attributes differ from most measures imposed to satisfy regulatory requirements. Typical regulatory measures cost the producer money to install and maintain without realizing a financial benefit (i.e. catalytic converter with AFR system). Installing the REMVue system offers producers a rare opportunity to satisfy regulatory requirements, contribute to corporate citizenship goals and enhance profitability.

5.0 COST RECOVERY

5.1 Scope of Installation

The REMVue is a modular PLC (Programmable Logic Controller) control system that allows the user a variety of installation options. The base system permits the operation of the air-fuel ratio alone (A system). In this case another control panel is required to provide the logic and safety shut down requirements for the equipment. Alternatively the REMVue can be upgraded to include the control logic, capacity control and safety shut down requirements (AS system). Diagnostic systems can also be included in a more advanced REMVue version to offer equipment predictive capabilities (additional instrumentation required specific to the application). The price for the various option packages vary according to the complexity of the installation and the application.

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The average cost for REMVue systems installed on a typical four throw separable reciprocating compressor driven by a Waukesha engine are as follows.

“REMVue 500 A” AFR system is about $50,000 to $60,000.

“REMVue 500 AS” AFR plus shutdown system is about $150,000.

Travel and subsistence are not included. Site electrical to support the panel or additional end devices are not included.

A typical REMVue installation for the air-fuel ratio control system alone will require approximately two days on site. Adding the end devices to the control system for the driven equipment and safety shutdown system will require and additional two to three days of work on site. The REMVue system can perform all the logic and communication tasks expected of any PLC based control system.

5.2 Variables

Please consult the following component check list for items that should be reviewed prior to installing a REMVue system:

- Existing control system (will an electrical upgrade be required) - REMVue panel (Place to mount the new REMVue panel) - Air/Fuel Ratio Control or Air/Fuel Ratio Control and complete shutdown

system - Fuel piping (welded or screwed) - Turbocharger(s) (will the existing turbocharger(s) be adequate) - Intercooler (will the existing intercooler be adequate) - Ignition (will the existing ignition system be adequate) - Governor (will the existing governor be adequate) - End devices (will the existing control end devices be adequate) - Air intake system (will the existing air intake piping be adequate) - Exhaust system (will the existing exhaust piping be adequate) - Operator training (personnel should be familiar with the REMVue system)

5.3 New Unit Installation

Typically the end user will wait until the first year of new engine warranty expires before installing a REMVue system. If a catalytic converter needs to be installed to operate during the first year this becomes an added expense.

To date the OEM’s do not recommend the REMVue system on a new engine still under the new engine warranty. A future possibility may be a scenario that would see the installation of a REMVue system incorporated into the OEM design, possibly under the currently available “OEM Special Applications” umbrella.

5.4 Calculating Cost Recovery

The most consistent estimating method we have is derived from the PCOG field tests. This work provided us with the fuel gas saving of 20 kg/hr regardless of speed or load. Using this as a basis for calculation we can normalize the fuel gas saving based on the displacement of the engine. The economics may then be applied for different engines. The following calculations show how this be achieved (CID = Cubic Inches Displacement for an engine).

20 kg/hr fuel savings for a 7042 CID engine = .00284 kg/hr-CID

0.00284 kg/hr-CID = $0.02616/CID-day estimated at $8/GJ for any engine

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Looking at the Waukesha 7042GSI engine in the PCOG tests:

20 kg/hr = 0.604 e3m3/d = 0.0857 m3/CID-day = 31.28 m3/CID-yr @ 0.795 kg/m3 gas

Saving = $67,420/yr @ $8/GJ

The cost of the REMVue is thus recovered in one to two years based on the purchase price of the REMVue system plus installation (labour, electrical, end devices, etc.). A general formula for calculating the annual cost in fuel gas saving is shown below.

Annual Fuel Saving ($) = (engine CID)*(0.00284 kg/hr-CID)*(gas cost $/m3)*24*365

(gas density kg/m3)

White Superior engines experience a fuel savings associated mainly with the engine management system. This savings will be between 3% and 5% of the as-found consumption. The OEM predicted fuel consumption value may be used as a conservative fuel gas saving estimate for the White Superior engine.

6.0 FIELD TEST RESULTS

6.1 Individual Site Field Test Results (BP in kind contribution)

BP Canada has a corporate mandate to reduce fuel consumption and emission rates of Green House Gases (GHG). Ten Engines at six sites were retrofit with REMVue AFR Engine Management Systems. The engines are described as follows:

Three White Superior 16GT-825

Four Waukesha P9390GSI

Three Waukesha L7044GSI

The test results produced general savings in fuel consumption and CO2e as expected. The White engines were already operated with very lean air-fuel ratio but with low reliability. The REMVue was installed to enhance the reliability. The White engines may be disregarded in the economic analysis since they did not achieve any substantial change in emissions levels or fuel consumption (two of the Whites had first generation REMVue systems). The Waukesha engines therefore offer the best basis for comparison and value calculations. Our calculations suggest the following results:

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Estimating Values Gas Price for Economics $8.00 per mscf Gas Price for Economics $0.283 per m3

Gas Price for Economics $7.41 per GJ Sweet gas density 0.795 kg/m3

Gross Heating Value 1,030 BTU/mscfGross Heating Value 0.0410106 GJ/m3

Test Value Estimates Total Fuel Gas Reduction (relevant units) 4.21 e3m3/d Total Fuel Gas Reduction (relevant units) 1,538 e3m3/yr Total Fuel Gas Reduction (relevant units) $434,541 per yr

Total Reduction All units Relevant

Units Average Exhaust CO2 percentage 23.8 22.8 Average Exhaust NOx ppm 14587 13695 Average CO ppm 19263 19030 Average NO ppm 15106 13471 Average NO2 ppm 523 399 Fuel Consumption - KG/H 103 140 CAPP CO2e (tonnes/yr) 2531 3918

Table 1: BP Field Test Result Summary The REMVue test results contained within this report are conclusive. Data that was suspect or unreliable for any reason was excluded. All data will however, be retained in the event that an interest should arise. Selected test results of the pre-audit, post audit and stability tests are presented in a condensed table format to allow for ease of comparison.

Evidence is provided to support the claims made by Spartan Controls, REM Technology Group; the REMVue Engine Management System will reduce fuel consumption rates, reduce GHG emissions, lower engine exhaust temperatures and is capable of tracking the operation variables to provide sustainable results. The term “stability” has been selected to identify the equipment’s ability to adapt to changing conditions and maintain finite control. It should also be noted that maintenance repairs undertaken on any piece of rotating equipment during a testing period will have an impact on the test results; i.e. a tired engine is overhauled and put back into service will run better, produce more power, possibly use less fuel and burn less oil once broken in. This was the case for the Waukesha 7044 at unit number 6. The unit underwent a complete over haul of the engine and compressor between the pre-audit and post-audit. Furthermore, two of the White Superior 16GT825 engines (units one and two) were equipped with a first generation of the REMVue technology so the savings were not experienced on these engines. These three engines are excluded for m the results shown as the “relevant” data. Data for all the engines is shown in the appendices.

A table summarizing BP’s experience with their ten engines is shown below. The relevant data is shown next to the total results. The relevant data is best used to form an accurate opinion of the REMVue system performance.

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Statistics: Pre-Audit less Post-Audit All units Relevant All units RelevantMeasured Value Ave % dif Ave % dif Ave Dif Ave Dif Engine air intake manifold pressure L (kpa) -75.8% -88.4% -9 -8Engine air intake manifold pressure R (kpa) -69.9% -82.2% -8 -8Engine air intake manifold temperature L (°C) -17.2% -18.0% -5 -4Engine air intake manifold temperature R (°C) -12.7% -12.7% -4 -3Exhaust O2 percentage -1409% -2010% -4 -6Average Exhaust CO2 percentage 22.0% 29.2% 2 3Average Exhaust NOx ppm 28.0% 36.0% 1459 1956Average CO ppm 55.9% 65.7% 1926 2719Average NO ppm 30.5% 37.1% 1511 1924Average NO2 ppm 7.7% 14.2% 52 57CxHy percent CAPP CO2e (tonnes/yr) 5.4% 11.2% 253 560Lambda ratio -32.4% -44.0% -3.49 -0.46Engine speed 1.9% 2.5% 18 24Cylinder 1L exhaust temperature 9.9% 14.2% 61 87Cylinder 2L exhaust temperature 7.6% 10.5% 47 66Cylinder 3L exhaust temperature 3.2% 5.1% 28 42Cylinder 4L exhaust temperature 9.1% 13.0% 55 80Cylinder 5L exhaust temperature 3.8% 6.0% 28 43Cylinder 6L exhaust temperature 8.5% 13.0% 52 78Cylinder 7L exhaust temperature 2.1% 0.8% 8 2Cylinder 8L exhaust temperature 5.7% 8.4% 32 48Cylinder 1R exhaust temperature 7.6% 10.9% 51 74Cylinder 2R exhaust temperature 10.2% 13.1% 61 79Cylinder 3R exhaust temperature 10.8% 15.2% 67 95Cylinder 4R exhaust temperature 10.4% 14.1% 66 89Cylinder 5R exhaust temperature 11.7% 17.2% 73 106Cylinder 6R exhaust temperature 9.3% 13.5% 59 84Cylinder 7R exhaust temperature 3.7% 9.1% 22 52Cylinder 8R exhaust temperature 9.7% 14.6% 55 82Fuel Consumption - KG/H 5.4% 11.2% 10 20Engine horsepower (kw) -2.7% 0.5% -23 6Percent of engine load -2.7% 0.5% -1% 0%

Table 2: BP Field Data SummaryBP’s data lacked consistency because the initial set points on the engines could not be matched exactly to the post audit conditions. Comparisons to manufacturer specified performance data is also difficult to obtain since published data is not provided at the conditions found in the field. In contrast, consistency was obtained in our PetroCanada test because a load map could be constructed and factory equipped engine setting could be compared to the REMVue equipped engine at similar conditions. Without this comparison, consistency should not be expected from field tested engines.

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6.2 Load Map Field Test Results (PetroCanada in kind contribution)

PetroCanada provided a site in Southern Alberta that contained three identical engines, two equipped with REMVue 500 systems (conversions to lean burn) and one equipped as supplied by the OEM as rich burn. Tests were performed on the units with and without the REM systems.

Tests were performed to determine a load map for the REMVue system on Waukesha L7042GSI engines. The process conditions were relatively stable during the tests so the results are consistent and should be repeatable. We were able to load the equipment fully throughout the load range.

An engine’s fuel consumption varies with speed and load. It was decided that the tests incorporate a fuel consumption load map to verify the engine performance over a variety of speeds and loads. This data can then be applied to other similar engines in the fleet with a greater level of confidence.

Unit Unit 1: REMvue 500 Equipped Waukesha L7042GSI

Engine Speed 700 900 1000 Load Low Med High Low Med High Low Med High

O2 Percent 7.1 4.5 0.7 6.5 5.7 4.5 7.9 6.8 6 CO Kg/hr 0.46 0.3 12.2 0.65 0.51 0.47 0.85 0.92 0.73 CO PPM 220 145 5735 220 160 135 215 230 165 CO2 Kg/hr 250 298 377 373 421 502 453 496 585 CO2 Percent 7.7 9.2 11.3 8.1 8.5 9.2 7.3 7.9 8.4 NO PPM 1292 4485 4450 1415 3008 4466 463 1020 2649NOx Kg/hr 4.4 15.27 15.63 6.84 15.67 25.85 3.03 6.74 19.39NOx PPM 1297 4513 4484 1420 3029 4533 467 1028 2664NOx g/bhp-hr 8.65 24.75 20.14 10.03 18.76 24.74 3.81 7.09 16.1 CH4 (or CxHy Dec 09) % 0.449 0.079 0.335 0.170 0.096 0.132 0.181 0.096 0.153Lambda Number 1.514 1.274 1.035 1.451 1.375 1.274 1.608 1.482 1.403CO2e CAPP (2.012 t/E3M3) Tonnes/Yr 2234 2651 3363 3314 3756 4468 4026 4419 5180Fuel consumption KG/H 91 108 137 135 153 182 164 180 211 Fuel consumption E3M3/D 3.04 3.61 4.58 4.51 5.11 6.08 5.48 6.02 7.05 Exhaust Flow Rate (calculated) KG/H 3418 3403 3489 4856 5209 5735 6545 6615 7331Compressor power Kw 379 460 579 509 623 779 592 709 898 Percent of engine load Percent 59 72 90 62 75 94 64 77 98 Utility gas station flow E3M3/D 20.1 20.6 21.3 21.5 22.4 23.7 22.7 23.2 21.3 Intake manifold pressure - L KPa 4.28 5.5 10.4 13.5 20.7 33.6 26.3 33.7 48.5 Intake manifold temperature - L Degrees C 22 19 18 19 18 18 18 19 20 Intake manifold pressure - R KPa 4.2 5.7 10.6 13.8 20.8 33.8 25.7 33.9 49 Intake manifold temperature - R Degrees C 22 20 19 20 19 19 19 20 21 Average Exhaust Temperature Degrees C 455 487 547 515 532 559 540 551 574

Table 3: Load Map of Unit 1 (Equipped with the REMVue 500 System)

Tests on the REMVue systems at best fuel and best emission settings will also provide different results. In general, the tests produced results as expected with higher levels of fuel consumption and lower emissions with the systems set to the “best emissions” setting. The best results can be obtained if the REMVue is set to the desired setting at the expected normal operating point. The system can also be configured to operate at different setting over a range. See Table 2 for a comparison of changing engine parameters by adjusting the AFR.

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Unit 2 AFR Setting As

Found Best Fuel

Best Emissi

on As

Found Best Fuel

Best Emission

Engine Speed 900 900 900 1000 1000 1000Suction Pressure 404 404 404 560 555 555

O2 Percent 5.9 5.4 7.8 5.4 5.8 7.4CO PPM 225 225 340 220 325 410CO Kg/hr 0.73 0.71 1.31 0.95 1.42 2.09CO2 Percent 8.4 8.7 7.7 8.7 8.5 7.6CO2 Kg/hr 429 430 465 590 584 606NO PPM 3025 3952 392 3934 3314 778NOx PPM 3042 3979 401 3961 3338 791NOx Kg/hr 16.26 20.58 2.53 28.1 23.97 6.59NOx g/bhp-hr 19.52 24.71 3.05 23.92 20.13 5.54

CH4 (or CxHy Dec 09) % 0.09 0.15 0.15 0.12 0.14 0.14Lambda Number 1.393 1.348 1.595 1.348 1.384 1.548

CO2e CAPP (2.012 t/E3M3) Tonnes/Yr 3829 3829 3952 5253 5180 5376Fuel consumption KG/H 156 156 161 214 211 219

Exhaust Flow Rate (calculated) KG/H 5,38 5,21 6,38 7,14 7,23 8,41Compressor power Kw 621 621 620 876 888 888

Percent of engine load Percent 75 75 75 97 97 97Panel torque percent Percent 80 80 83 102 100 104

Utility gas station flow E3M3/D 22.0 21.2 22.7 14.2 24.1 24.4Intake manifold pressure - L KPa 26.9 25.9 42.3 52 53 71.6

Intake manifold temperature - L Degrees C 19 20 21 22 22 25Intake manifold pressure - R KPa 26.9 25.9 42.2 52 52.8 71.3

Intake manifold temperature - R Degrees C 22 23 24 26 25 28Average Exhaust Temperature Degrees C 593 596 590 647 643 637

Table 4: Differences between REMVue 500 Performance at Various AFR

The ability of the REMVue system to operate at a variety of AFR’s at various loads demonstrates the adaptive capability of the system. The response of the REMVue to changes in the load map also demonstrates how the REMVue 500 adapts to maintain a desired operating set point. The adaptive capability of the control system will provide more stable and efficient operation over a wide range of speeds of speeds and loads.

6.3 Compare Field Results to OEM Values (PetroCanada in kind contribution)

Please recall that the numerous variables found in field conditions make a common comparison with OEM test results nearly impossible. We could not obtain this commonality on the BP test results. The best data will be those obtained from our PetroCanada tests. PetroCanada’s tests offered an opportunity to compare OEM emission values with those obtained in the field. Waukesha worked with us to provide values that were matched to the as-found factory equipped engine. We could then compare reasonably similar values.

All three units at PetroCanada’s site operate with different AFR’s at the different speed and loads so comparison values will not be constant. The REMVue does not maintain the same AFR at every speed and load as it was programmed. The factory equipped engine also changes AFR with speed and load. Generally the AFR became leaner as the speed and load reduced on the REMVue equipped units and richer as the speed and load reduced on the factory equipped engine. This

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highlights two aspects where constant representative values cannot be produced. It does, however, represent actual field conditions so they are a valid representation of the results that any operator could expect. The AFR is also expressed by the ratio lambda in our work and a simplified method of calculation is used to estimate the ratio.

In general, the fuel gas consumption and emissions were reduced at least as much as REMVue claimed. We can validate this from the comparisons of unit three to unit one and two at the same loads and speeds. Fuel consumption was reduced by 8% at high loads and 18% at reduced loads. CO was generally reduced by more than 87% and CO2 was generally reduced by more than 26% due to leaner AFR with the REMVue system (recall that CO2 is a calculated value from the field analyzer). NOx was reduced by about 24%, depending on the speed and load, probably due to cooler combustion temperatures and leaner AFR’s with the REMVue. The unburned hydrocarbons remained relatively constant regardless of the AFR, perhaps because the flame quenching and crevice volume characteristics of the cylinder would remain constant.

Please note that the percentages are based on units with different AFR’s at the different speed and loads so the percentage values cannot be constant. The fuel gas consumption, for example, is approximately 20 kg/hr less at all speeds and loads for the REMVue compared to the factory equipped rich burn engine. The magnitude of reduction is near the same at different loads but the percentage decrease varies substantially because the absolute difference is a larger portion of the base amount. The percentage differences over the load map are shown in Table 5 with a graphical representation shown in Figure 1.

Figure 1: The fuel consumption was reduced by about 20 kg/hr on the REMVue equipped engine (Unit 1) with respect to the factory equipped engine (Unit 3) regardless of speed or load.

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Unit 1 v.s. Unit 3 (% dif = Unit 1-Unit 3/Unit 3)

Engine Speed 700 900 1000Load Low Medium High

O2 % dif 3450.0% 1800.0% 900.0%O2 Dif in % 6.9 5.4 5.4CO % dif -98.6% -87.5% -92.1%CO Dif in PPM -15110.0 -1122.0 -1935.0CO % dif -98.2% -85.0% -90.2%CO Dif in kg/hr -25.6 -2.9 -6.7CO2 % dif -33.6% -26.1% -26.3%CO2 Dif in % -3.9 -3.0 -3.0CO2 % dif -19.1% -11.9% 50.0%CO2 Dif in kg/hr -59.0 -57.0 195.0NO % dif -37.8% -14.6% -39.0%NO Dif in PPM -785.0 -513.0 -1695.0

NOx % dif -37.6% -14.1% -38.7%NOx Dif in PPM -782.0 -499.0 -1681.0NOx % dif -23.9% 2.4% -23.4%NOx Dif in kg/hr -1.4 0.4 -5.9NOx % dif -22.2% 2.7% -21.5%NOx Dif in g/bhp-hr -2.5 0.5 -4.4

CH4 (or CxHy Dec 09) % dif -34.5% -82.9% 234.1%CH4 (or CxHy Dec 09) Dif in % -0.2 -0.5 0.1

Lambda % dif 49.9% 35.5% 36.2%Lambda Dif in Number 0.5 0.4 0.4

CO2e CAPP (2.012 t/E3M3) % dif -18.8% -11.3% -8.3%CO2e CAPP (2.012 t/E3M3) Dif in Tonnes/Yr -515.5 -478.7 -466.4

Fuel consumption % dif -18.8% -11.3% -8.3%Fuel consumption Dif in KG/H -21.0 -19.5 -19.0

Exhaust Flow Rate (calculated) % dif 22.9% 21.0% 25.8%Exhaust Flow Rate (calculated) Dif in KG/H 636.4 903.8 1503.5

Compressor horsepower % dif -2.3% -0.3% -2.4%Compressor horsepower Dif in kW -9.0 -2.0 -22.0Percent of engine load % dif -1.7% -0.7% -2.0%Percent of engine load Dif in % -1.0 -0.5 -2.0

Intake manifold pressure - L % dif -57.2% 314.0% 61.7%Intake manifold pressure - L Dif in KPA -5.7 15.7 18.5

Intake manifold temperature - L % dif -42.1% -56.1% -52.6%Intake manifold temperature - L Dif in Deg C -16.0 -23.0 -22.2

Intake manifold pressure - R % dif -53.3% 73.3% 63.3%Intake manifold pressure - R Dif in KPA -4.8 8.8 19.0

Intake manifold temperature - R % dif -45.0% -53.7% -49.5%Intake manifold temperature - R Dif in Deg C -18.0 -22.0 -20.6Average Exhaust Temperature % dif -19.8% -16.7% -16.8%Average Exhaust Temperature Dif in Deg C -112.1 -106.6 -115.5

Table 5: Differences between REMVue (Unit 1) & Factory Equipped Engine (Unit 3) Note: % difference calculated as (Unit 1 – Unit 3)/Unit 3

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Additionally, exhaust temperatures were also significantly reduced by about 100 degrees Celsius. The lower exhaust temperatures were visible in the turbo temperature of unit three that glowed red in comparison to units one and two that exhibited a typical cooler metal color. Cooler exhaust temperatures should yield longer cylinder head life that should translate into increased reliability with reduced maintenance costs.

Figure 2: The exhaust temperature was reduced by about 100 oC on the REMVue equipped engine (Unit 1) with respect to the factory equipped engine (Unit 3)

A striking visual comparison may also be made between the REMVue equipped engine and the factory equipped engine. Factory equipped rich burn engines often operate with the turbocharger housing quite glowing red at full speed and load.

Photo: Note the turbocharger color shown on the right for unit three (factory equipped engine) at full load and speed as compared with unit two (REMVue equipped) on the left under the same conditions (cooler black metal).

An attempt to estimate the equivalent carbon dioxide released into the atmosphere (CO2e) from unburned hydrocarbons and other elements was undertaken to determine the greenhouse gas affects. Three methods were employed. Method A utilizes the measured fuel consumption,

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measured methane in the exhaust (from AGAT) and the calculated CO2 from the field analyzer. Method B utilizes the measured fuel consumption, measured methane in the exhaust (from AGAT) and the measured CO from the field analyzer. The CAPP method utilizes the measured fuel gas consumption alone. The CAPP method produces more stable results for our particular field tests because the measured values of methane, and to a lesser degree, the calculated value of CO2 introduces substantial error into the estimates. The CAPP value will produce the most stable results for trending purposes.

Graphs have been prepared that illustrate the trends for the emissions, exhaust temperatures, fuel consumption and CO2e over the range of speeds, loads and lambda (excess air). We compare the REMVue equipped units to the factory equipped unit. Please refer to the appendices for these graphs and the source data for the graphs.

7.0 CONCLUSIONS The results of the field tests are conclusive. The claims of Spartan Controls’ REM Technology Group relative to the capabilities of the REMVue system have been substantiated in that notable improvements in engine performance with reductions in fuel consumption and emissions. Due to the operational variables that exist, the percentage improvement rate will vary from site to site and between comparable engine models and types.

This most recent testing initiative effectively supports the findings of earlier testing programs conducted at BP Canada sites. These results also correlate with the results from similar tests conducted with other producers. Additional information from other producers has been included within this report for information purposes only.

The retrofitting of specific models of natural gas engine driven compression packages with REMVue systems will realize the long term objectives to reduce greenhouse gas emission levels, reduce fuel consumption and improve equipment reliability.

The benefits to industry are direct economic gains wrought through reduced operating costs (fuel usage rates), improved system reliability, improved productivity, generally extended service life of components and longer maintenance intervals(i.e. maintenance dollars per horsepower-hr will be reduced). This translates into a life cycle cost reduction. At the higher market rates for natural gas, fuel gas savings are compounded when the gas is commoditized. Fuel gas that would have been otherwise consumed reverts to a saleable commodity. The increased equipment reliability translates into increased productivity and an enhanced sales revenue stream.

Public benefits are realized by reduced greenhouse gasses and conservation of natural gas reserves. These reserves may then be produced to achieve revenue that would otherwise not have been realized. The incremental revenue will benefit producers and the public will benefit by additional taxes, royalties and other associated aspects that would not have been available otherwise. Producers and the public benefit from the application of this technology in that regulatory requirement may be met for public benefit with cost recovery achieved for the producer.

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BIBLIOGRAPHY

1 - “An Investigation into REMVue Technology and the Effects on Compressor Reliability”

Prepared by Venessa Veres May 2005

2 – REM Technology Inc information from their website;

http://www.remtechnology.com/news/magazine2.htm

3 – “A VALIDATION STUDY FOR A REMVue 500/A ENGINE MANAGEMENT SYSTEM”,

Prepared for PetroCanada Oil and Gas by Accurata Inc; Frank Zahner, Ken Terrell, Howard

Malm, Philip Croteau, Jody Hood, June 2005

4 –REMVue Field Test Results for BP 2004 Installations, Prepared for BP Canada Energy by

Accurata Inc; Bill Gibb, Ken Terrell, Frank Zahner, September 30 2005

5 –Natural Gas Engines – Reducing Greenhouse Gases, Prepared for Combustion Canada

Conference by REM Technology, Howard Malm, September 22-24 2003

6 –Fuel System Management Alternatives For Rich Burn Engines, Prepared for Devon Canada

by Accurata Inc; Frank Zahner, Ken Terrell, December 2003

7–Personal correspondence with Waukesha and White Superior representatives as well as REM

Technology Inc personnel (Howard Malm, Cam Dowler, Lorne Tuck, Greg Brown, Wade

Mowat), 2003 to present.

Note: excerpts (often unmodified) from the text of the work performed by Accurata for

PetroCanada and BP appear in the text of this report as part of the as in kind contributions from

those companies.